9911796707
TMI Blog2019 (4) TMI 1146X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of vehicles and spare parts at their factory premises at Kurla during the relevant period. On scrutiny of the records of the appellant, certain discrepancies were noticed and consequently Revenue issued a demand notice for the period from April 2003 to March 2007 alleging that even though in their balance sheet for the respective years, the provisions for obsolescence raw materials and finished goods were made, but the credit attributed to such obsolescence materials were not reversed. Consequently, the demand notices both for raw material and finished goods were issued, for recovery of Rs. 16,77,86,642 with interest and penalty, invoking extended period of limitation. On adjudication, the demand was confirmed with interest and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t availed on inputs which alleged to have been written off in their books of accounts. In support, the Learned Advocate referred to the judgment of Hon'ble Bombay High Court in the case of Commissioner of Central Excise, Navi Mumbai v. Hindalco Industries Ltd 2011 (272) ELT 161 (Bom.) and the Hon'ble Gujarat High Court in the case of Commissioner of Central Excise v. Ingersoll Rand (India) Ltd 2014 (300) ELT 347 (Guj.). He has further submitted that allegation has been made in the show cause notice that the inputs/raw materials were removed without reversal of credit or payment of duty. Further, he submits that all the facts were within the knowledge of the department as being reflected in the respective balance sheet and, therefore, allega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh they have made provisions for obsolescence raw materials in their balance sheet, it was only for the purpose of arriving at the correct value of the inventory, but in fact, the said raw materials were not written off from the books of accounts and the provisions created were later reversed in the subsequent financial years. The feeble arguments that has been advanced by Learned Authorised Representative for Revenue that even though the materials were shown as obsolescence stock in the books of accounts, which were supposed to be in the factory and could not be identified during the course of visit of the officers to their factory hence, not used accordingly, credit is reversible. We do not find substance in the said contention of the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the cenvat credit taken in respect of the said input or capital goods. Under sub-rule (5C), where on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules, 2002, the cenvat credit taken on the inputs used in the manufacture or production of the said goods shall be reversed. Rule 21 of the Central Excise Rules, 2002 deals with a situation where the goods have been lost or destroyed by natural causes. A provision has been made in Rule 21 for the remission of duty payable on such goods. 5. The period involved in the present Appeal is prior to the insertion of sub-rules (5B) and (5C) in Rule 3. 6. In Commissioner of Central Excise v. Indian Petrochemica ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
